Chip stocks lead a divided session
U.S. stocks finished higher Tuesday as investors returned to several large technology and chip companies, although the advance was narrow. The S&P 500 rose 0.36% to 7,568.92, while the Nasdaq composite gained 0.83% to 25,372.01. The Dow Jones Industrial Average fell 0.38% to 51,787.04.
Most companies in the S&P 500 declined, according to Reuters. Six of the index’s 11 sector groups ended lower. Consumer staples fell 1.76%, the largest sector decline, while materials lost 1.75%. The performance showed how gains in a small group of influential technology shares were enough to offset weakness across much of the broader market.
| Index | Nov. 3 close | Daily move |
|---|---|---|
| S&P 500 | 7,568.92 | Up 0.36% |
| Nasdaq composite | 25,372.01 | Up 0.83% |
| Dow Jones Industrial Average | 51,787.04 | Down 0.38% |
Investors rotate within technology
Apple dropped 1.9% after warning that higher memory-chip costs would continue to pressure its holiday-quarter gross margin. The decline came after Apple joined a group of major technology companies whose quarterly results had disappointed investors.
Other technology shares moved in the opposite direction. Nvidia rose 2.3% after four consecutive losing sessions. Micron Technology gained 2.6%, while Microsoft and Amazon each advanced more than 2%. The Philadelphia semiconductor index also climbed, and AMD rose before releasing its quarterly results after the market closed.
“This is a rotation from safe tech, like Apple, into riskier tech, like chipmakers. It's clear dip-buying in a higher-risk, Nasdaq-driven market.” — Jay Hatfield, chief executive officer of Infrastructure Capital Management
The moves came as investors continued to assess whether the enormous cost of developing artificial-intelligence infrastructure will produce enough cash in the near term. The Nasdaq 100 finished Monday more than 10% below its Oct. 6 record close, placing the technology-heavy index in a correction. Amazon and Alphabet shares fell sharply the previous week after their quarterly results heightened concerns about the expense of their artificial-intelligence investments.
Election and energy issues remain in focus
Investors were also trading as Americans voted in the Nov. 3 midterm elections. The S&P 500 remained about 3% below its Oct. 6 record close, but was still up more than 10% in 2026, according to Reuters.
Oil prices eased as markets considered negotiations related to the wars in Ukraine and Iran alongside the possibility of further supply disruptions after recent attacks in both conflicts. A senior Iranian official told Reuters that Iran and the United States remained far from an agreement to end their war.
- Nasdaq: rose 0.83% to 25,372.01.
- S&P 500: rose 0.36% to 7,568.92 despite declines in most component stocks.
- Dow: fell 0.38% to 51,787.04.
The session left the major indexes moving in different directions, with chip and other large technology shares driving the gains while Apple, consumer staples and materials weighed on the broader market.
